Author Topic: Where's a good place to invest 10K for someone that's not responsible with money  (Read 2522 times)

jabell

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My Aunt informed me my Grandfather has given her 10K for my mom (because my aunt is more responsible).  My mom is not responsible when it comes to money.  My aunt does not want to give her a 10K lump sum because my mom would most likely piss it away.  My aunt does not want to let it sit and asked if I knew of a possible place to put it so that it can at least accumulate some interest.

My mom is 57, and does not work.  My Mom's little income is part of my Dad's pension from the divorce.

Is there a good place to put this money based on the scenario?

 

mgarf

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Whether someone is responsible or not shouldn't influence where to put the money if a responsible person (your aunt) is looking after the money in their stead.

The only thing that influences where to put the money is the investment time horizon. If your mom will need this money in decades from now, then 100% stocks. In less than decades than maybe 50% stocks / 50% bonds. If she's gonna need it within a few years, high interest bank savings account.

jabell

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It does influence where the money is put.  If she was responsible it would be put in her own hands.  She is not responsible so it has been put in someone else's hands.
« Last Edit: November 15, 2016, 11:11:18 PM by jabell »

Bracken_Joy

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I'd does influence where the money is put.  If she was responsible it would be put in her own hands.  She is not responsible so it has been put in someone else's hands.

That's not how it is *invested* though, just who is *managing* it. And you didn't answer about time horizons.

jabell

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I did not answer about time horizons because no one asked.  I don't know when she will need it.  If you were to ask her she would need it now and be broke not long after receiving it.

marty998

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One more vote for a shares fund.

Goldielocks

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Maybe look into a prescribed annuity... although 10k is not a lot.

Ideally, it would pay out for 20 years, rather than to death and drop down to zero, then stop, while paying directly to her on a monthly or quarterly basis.

Why?  Annuities may have quite a few fees, but simple ones should not be too bad and are designed to lock you away from touching the principal, in return for a chance for the company to profit by your early death and annual fees.


Mighty-Dollar

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doggyfizzle

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Philip Morris; your mom will get about $500/year in dividends and won't have to touch principal for a small income stream.  Extremely low risk of long term loss of capital.